Vice President Wallace's answer to those questions was published in The New York Times on April 9, 1944, at the height of the war against the Axis powers of Germany and Japan.

"The really dangerous American fascists," Wallace wrote, "are not those who are hooked up directly or indirectly with the Axis. The FBI has its finger on those. The dangerous American fascist is the man who wants to do in the United States in an American way what Hitler did in Germany in a Prussian way. The American fascist would prefer not to use violence. His method is to poison the channels of public information. With a fascist the problem is never how best to present the truth to the public but how best to use the news to deceive the public into giving the fascist and his group more money or more power."

Quote:

Italian philosopher Giovanni Gentile who wrote the entry in the Encyclopedia Italiana that said: "Fascism should more appropriately be called corporatism because it is a merger of state and corporate power."

Corporatism is very dangerous. It would have us in a neo-feudalism.
Here are a few statistics.
"#27 Corporate profits as a percentage of GDP are at an all-time high. Meanwhile, wages as a percentage of GDP are near an all-time low."Also, corporate tax payments are WAY low.
#26 The average CEO now makes approximately 350 times as much as the average American worker makes.

#35 Federal spending on welfare has reached nearly a trillion dollars a year, and it is being projected that it will increase by another 80 percent over the next decade.

America had a lock on manufacturing after WW II. We built up a HIGH level of wages and prices. We lost our job to low-wage competitors. Obviously the wages have gone down.(AGGREGATE). Real estate and stock prices are held up artificially by money injections. Costs have to go down a LONG way to meet American purchasing power.
The article claims that GOV spends $ 1 trillion a year on "welfare".
GOV also accrues and additional $ 7 trillion a year on unfunded commitments. The $ 85 billion that the FED is printing is chicken feed.

The social net costs appear to be unsustainable. How can GOV keep paying a $ trillion a year? How can it stop? How about the projected 80% increase.
That doesn't even make mention of the $ 7 trillion extra incurred every year.
GOV pensions are included in all those bills. What will GOV employees and retirees do when it all comes to a stop.

These reports are available in other European languages.
"All these factors, economic, geopolitical, American, global, are coming together at the same moment in time: the second quarter of 2013. Our team has identified the period running from March to June 2013 as being explosive,"

These reports are available in other European languages.
"All these factors, economic, geopolitical, American, global, are coming together at the same moment in time: the second quarter of 2013. Our team has identified the period running from March to June 2013 as being explosive,"

John Bedini says that he and Bearden discovered how to make gold in his vid "Petrovoltaics".
Supposedly, you can make gold from a mercury isotope.Mercury(Hg) + Electricity = Gold(Au) - YouTube
Moray had a process to increase the yield of PM ores.

Nature does lots of transmutation in the plant world. No cites at the moment.

The Architects of the Eurozone knew that it would never work. There had never been a successful currency union without a fiscal union. Europe was too tribal to form a fiscal union so the money powers forced a currency union knowing that it would fail,,,, hoping to FORCE a fiscal union in the resulting chaos and hardship. The Eurocrats have recently admitted that they knew the Euro would fail. The Germans knew that they would get sucked in and some even tried to stop it.Dr. Wilhelm Hankel: Why the `Euro' System Is Unsustainable

GOV has grown into an enormous, all-consuming, self-perpetuating monster.
Hoping to avoid it's eventual (justified) demise, it tries to control EVERYTHING. This necessitates a police state. No amount of pain is too much for you to bear if it insures the perpetuation of GOV,,, the Uber-parasite.

The money powers created the Euro in the hopes that it would be an alternative to the petro dollar. Due to over-printing, the future of the Euro is in great doubt. Goldman Sachs did their part to destroy the Euro by helping the Greeks to hide their true debt. It's a war of the dollar against ALL comers.

"Three scientists from the Swiss Federal Institute of Technology in Zurich, led by James Glattfelder, recently did this  and their results were published in New Scientist, a respected science magazine.

Glattfelders team unleashed a vast armada of supercomputers on Orbis 2007 -- a very elaborate database of the top 37 million corporations and individual investors worldwide.

The results were absolutely stunning.

A CORE OF 1,318 COMPANIES EARN 80 PERCENT OF THE WORLDS WEALTH

The Swiss scientists quickly found a total of 43,060 trans-national corporations in the Orbis 2007 database.

From this group, Glattfelders team revealed that a core of 1,318 companies directly controlled 20 percent of the worlds wealth.

However, these corporations also appeared to own and control the stock in a majority of the worlds largest companies -- whose profits added up to an additional 60 percent of global revenues:

Although they represented 20 per cent of global operating revenues, the 1318 [corporations] appeared to collectively own, through their shares, the majority of the world's large blue chip and manufacturing firms -- the "real" economy -- representing a further 60 per cent of global revenues .

[This] core of 1318 companies [had] interlocking ownerships. Each of the 1318 had ties to two or more other companies, and on average they were connected to 20 [other corporations].

A SUPER-ENTITY OF 147 CORPORATIONS CONTROL 40 PERCENT OF THE WEALTH

If that isnt surprising enough for you, then how about this?

Glattfelders team then crunched the numbers even harder  and found a very deeply hidden super-entity of only 147 corporations  and much of it was connected to the 1,318-company core.

These 147 companies were all interconnected with each other in an even more tightly knit pattern than the 1,318 corporations in the core. To put it simply, they all owned each others companies.

[Specifically, each company within the super-entity owned shares in all 146 others.]

Together, this super-elite, good-old-boys-club of 147 companies directly earns a whopping 40 percent of all the wealth in the world:

When the team further untangled the web of ownership, it found much of it tracked back to a "super-entity" of 147 even more tightly knit companies -- all of their ownership was held by other members of the super-entity -- that controlled 40 per cent of the total wealth in the network.

Without the advanced technology of supercomputers and chaos theory, no one would have been able to discover this."

I started to think that capitalism and free-market economic system are not one and the same. As some point, they happily co-exist with other but, at some point, they depart from each other for good.

A free-market economic system (FMS) offers to its participants incentives as well as rewards for a success and a punishment for a failure to be competitive, innovative, and industrious. FMS levels a "playing field". FMS stops to exist when a ruling economic oligarchy is using criminal means (such as a monopolistic power, fraud, intimidation, force, governments promoted favoritism, etc.) to dominate a society and its economic life.

Capitalism is more about a financial control of an economy. At a beginning, capitalism successfully coexists with a free-market enterprise and promotes competitiveness. However, as time goes by, a banking system acquires and merges with political institutions and dominates an entire society economic & political life. At certain advanced stage of capitalism development, the main and only objective of a ruling banking oligarchy becomes preservation and further expansion of its power and privileges. As more and more political & economic power controlled by a banking oligarchy, the entire society becomes more and more corrupt and less and less productive leading to an economical decline and political instability. At this stage, capitalism slides to a domestic totalitarian society and becomes aggressively involved in international military adventures. As this process continues, a banking oligarchy behaves as a metastatic cancer killing a host body. At a certain junction, colonies become incapable of sustaining their masters. This in lead to a military confrontation between colonial masters.

In a great post by David Cohen on DeclineOfTheEmpire.com, titled, Sociopaths in America, he writes:

. . . some proportion of the population is sick and theres nothing you can do about it. However, a Decent Society uses a multitude of checks & balances to rein in conscienceless people, to prevent them from running amuck. But in America, the most dangerous inmates are now running the asylum. These elaborate controls on immoral (unethical) behavior have been lifted. (This is often called deregulation or regulatory capture.) The corrupt politicians have rewritten the laws in such a way as to make it legal to rip people off. There is no longer any fear of punishment.

Sociopaths can run wild
True sociopaths have no consciencenone.
They make life a game
They get their kicks from kicking others, from manipulating, and most of all from WINNING.

when i read it ..... the following day in the news appeared an interesting info :

Welcome my son, welcome to the machine.
Where have you been? It's alright we know where you've been.
You've been in the pipeline, filling in time,
provided with toys and Scouting for Boys.
You bought a guitar to punish your ma,
And you didn't like school, and you know you're nobody's fool,
So welcome to the machine.
Welcome my son, welcome to the machine.
What did you dream? It's alright we told you what to dream.
You dreamed of a big star, he played a mean guitar,
He always ate in the Steak Bar. He loved to drive in his Jaguar.
So welcome to the machine.Pink Floyd-Welcome to the machine (lyrics) HD - YouTube

MonsieurM, honest people are always at a disadvantage. The sociopath/psychopath is always willing to leave behind a trail of dead bodies to get what he/she wants.
Only be hanging together can we hope to prevail. That's why the PTB work tirelessly to keep us fighting each other.

U.S. GOV surrendered it's power to print money to the FED. It can't get the FED to print all the $ trillions that it wants so,,,, it floated an idea to stamp a $ trillion dollar coin. It still has the authority to stamp coins.

Hungary is working to take over their central bank to get enough money printed to save the day. It won't work. It NEVER works that way.
Gideon Gono printed enough money in Zimbabwe that toilet paper reached the price of $ 417 per sheet.

Jim Willie has the best "dirt" and is generally the most pessimistic. Like Cassandra, he is also very accurate. He has a site, Golden Jackass and he now lives in Costa Rica. America has about 4% of the population of the world. About 20% of this number make an honest living.
The R.O.W. is hard at work producing while we all dream of "doing deals".

Here are a couple of quotes from Jim.

They rejected the US-led plan. The Asians partners and players even rejected the United States from the entire Asian trade zone, but did include Australia and New Zealand. The incredibly stupid naive US-led plan, the Trans-Pacific Partnership, attempted to create a trade zone with Asia which would have blocked China. Imagine the incredibly obtuse blockheaded maneuver of trying to have all of Asia not conduct facilitated trade with China, its leading trade partner.Talk about shooting both legs and genital region with a double barreled shotgun!
This is the signal flare of US political stupidity that has turned highly destructive for the USEconomy and its people. Such failed leadership and counter-productive initiatives will push the US into the Third World even faster than previously thought possible."

We're being ostracized. This is our legacy;The Jeevas - Masters of War LYRICS - YouTube
Our politicians know that their very existence is in jeopardy. They have nothing to lose by crashing the whole shebang.
Blatant thievery will become more open and obvious. GOV already said that it wants to convert retirement funds into GOV securities. Such unexpected honesty??? IRAs and 401Ks will all disappear.

If you want a preview, just read up on the Argentine crisis.The Argentine Crisis :: Monthly Review
Argentina was crashed according to the usual formula.
There is always the possibility that the bankers have gone TOO FAR this time.

We all know that power corrupts and attracts the already-corrupt. Most of the time this attracts politicians that are corrupt. Every so often, somebody like Ron Paul sneaks in. In general, they are all corrupt.
From Frosty Wooldridge;
"However, less widely known is a pride of lions, a murder of crows, an exaltation of doves and, because they look so wise, a parliament of owls.

Preserving power and control is job-number-one. That means passing the "right" laws inspired by the "right" people. Search the quacks until you find a quack with the "right" views to bring you more power.

"Ultimately, the fatal flaw in the bankers paradigm of paper money is the hubris of central bankers themselves. Economists had convinced themselves that by printing money, they could achieve full employment (Keynes), that without gold, free market forces would stabilize currencies (Friedman) and that by sufficiently expanding the money supply a deflationary collapse in demand, i.e. depression, could be prevented (Friedman) and/or safely offset by increased borrowing (Keynes).

Both Keynsians on the left and Friedmanites on the right were convinced that central bank stewardship of paper money was better done without the constraint of gold. That somehow a house built on sand is preferable to one built on rockproving once again that if thought has no bounds neither does thoughtlessness."http://www.24hgold.com/english/news-...rt+Schoon&mk=1

There you have it. Money creation without constraints affords the most power to the bankers,,,, the politicians are second in line.
Politicians have a transcendental ability to ignore logic and history. No fiat currency has ever survived. The average life of a fiat currency is 30--40 years. The U.S. dollar as fiat is 42 years old. Being the reserve currency has given it a bit more longevity.
Bankers are obsessed with wealth. Putting bankers in charge of money creation has never been a good idea.

The only thing worse is putting politicians in charge. That is why most countries opt for having an independent central bank.
To be fair, the ORIGINAL charter of the Federal Reserve was a pretty good plan.
It mandated that the 12 member banks issue paper money only to the limit of the gold and "real bills" that they held. This was eventually thrown out by the 1935 banking act. The other big transgression was in 1920 when the FED president, Benjamin Strong started selling discountedTreasury notes
on the secondary market. It was illegal but congress didn't stop him. It created a credit bubble and the markets crashed 9 years later.

MonsieurM, Sir Alan Greenspan is a real smart guy. He knew that monetary growth has to be somewhat close to GDP growth. Many economists and central bankers believed that they could banish economic cycles and have permanent growth. He knew better but, went along with GOV mandates.

"Look, I'm very much in favor of tax cuts, but not with borrowed money. And the problem that we've gotten into in recent years is spending programs with borrowed money, tax cuts with borrowed money, and at the end of the day that proves disastrous. And my view is I don't think we can play subtle policy here."
Alan Greenspan
Read more at Alan Greenspan Quotes - BrainyQuote

He knew that it was disastrous to end Glass-Steagal. He did at anyway.
He also had a streak of stupidity;
"The maestro admitted in an October congressional hearing that he had "made a mistake in presuming" that financial firms could regulate themselves."

The monetary authorities and Central Bankers deluded themselves into thinking that they could end all economic cycles.
The first modern person to identify economic cycles was Nikolai Kondratieff.
He was sent to a gulag for his accuracy.Nikolai Kondratiev - Wikipedia, the free encyclopedia

A crash isn't a matter of "IF". It is a matter of WHEN.
No fiat currency has ever survived,,, 100% failure
No democracy has ever survived,,, 100% failure
No centrally-planned economy has ever lasted,,,, 100% failure
Socialism has never worked,, it eventually morphs into communism.

There is truly no other production system other than capitalism.
True, it has flaws. Consider this; modern middle class people have luxuries that kings didn't enjoy not too long ago. Any system other than capitalism negates the incentive of greed. Greed is absolutely necessary.Milton Friedman - Greed - YouTube

A true free-market economy erases the worst effects of runaway greed. That is why groups are always trying to form monopolies,,, to escape the free market. Do you think that politicians want to be paid what they are actually worth? Do you think that bankers want to be compensated for their actual productivity?

The most lucrative monopolies are the monopolies on stuff that we need to survive. Imagine what it would be like if every house had a Lockridge device and an atmospheric water generator. Suppose that we all planted a big garden.Growing Your Own Food in an urban backyard - YouTube

The parasites depend on monopoly power since they lack actual productivity.

Daily Bell: We tend to figure that there has been some deflation around the world as the bubble has collapsed but will there still be real  further  deflation as a certain group continually argues? We have a hard time with that idea because so much money has been printed.

Peter Schiff: We're gong to see deflation in the sense that prices, including asset prices and consumer good prices, will come down when measured in gold. If you look at deflation as falling prices, you will see falling prices if you're pricing things in gold. But the problem is, most of the people who are calling for deflation think that you're going to have deflation in terms of dollars, that the dollar is going to become more valuable.

That's not going to happen. The dollar intrinsically has no value at all but the government can create its dollars at will. They were talking about minting trillion dollar coins a few weeks ago. That shows you how easily the government can create money out of nothing. They can make trillion dollar bills. They're making them in Zimbabwe. So I think that if you think that you're going to see a collapse in prices in dollars you're wrong because even though the price of things might come down, I think the value of the dollar will come down even more. So from that perspective you're going to see inflation and potentially hyperinflation.

But in terms of real money you could see deflation, which is one of the reasons I'm saying people should buy gold because if you own gold then your cost of living is going to come down because for you, prices are going to get cheaper. But if you're putting your faith in dollar bills, your cost of living is going to skyrocket because the Fed will always try to fight the markets because of deflationary forces. And these are healthy, corrective forces. It's the market trying to re-price assets to where they should be. The government tries to artificially prop things up with cheap money and the market is fighting against that. But the government has a weapon that can overcome the market, and that's the printing press, and so as long as you're dealing in a fiat world, the rules of the game are different.

People who like to talk about deflation and they look at prior periods of deflation, they're looking at countries that were operating under a gold standard. We're not operating under a gold standard. We have no standard. And if you look at countries that have taken on tremendous debts in a fiat world, in a fiat system, it's never been deflation in terms of that currency; it's always been massive inflation or hyperinflation. It's only deflation if you measure prices against the currency that didn't collapse or against something like gold.

Douglas Macarthur was first in his class at West point. Here are a couple of quotes;
"History fails to record a single precedent in which nations subject to moral decay have not passed in to political and economic decline.[31]"
"It [socialism] discourages development of moral forces which would preserve inviolate our representative form of government, answerable to the will of the electorate.[16]"Douglas MacArthur - Conservapedia

Democracy (mobocracy) eventually leads to socialism. Socialism generally morphs into communism. Communism works (temporarily) by enforcing a command economy. A command economy always goes bust.
Respect for private property was a MAJOR influence in the growth of wealth in America. At the same time, Europe stagnated because royalty didn't respect private property of commoners.

Moral decay in leaders (GOV) is followed by decay in the general populace.
Why work and produce when it will just be stolen? Economic decline follows moral decay. There has been plenty written on moral decay.Moral decline - Conservapedia

Mores change over the years but, some things MUST be inviolate.
HONESTY is one of them. Can a person be selectively honest?
Can one lie to everyone but be strictly honest in business? It doesn't appear to be possible. Can one be successful in business if one is dishonest?
At one time, this may have been possible. Presently, in the information age, it is almost impossible. There are still a lot of net scams that pull in money but, it is more difficult.

The majority of liars that are successful are working for GOV. The rest of successful liars have to use force in addition to lying. Mafia.
Productivity withers away when socialism steals the profits.
Theft by the parasites (beggars, bankers and bureaucrats) brings economic stagnation. Communist East Germany was a good example.

It's impossible to have an integrated economy where there is no trust.

In reality, there is no honor between thieves. Government is a pack of thieves. Lacking honor, they demand GOLD. Lacking trust, they demand GOLD. What happens when the gold isn't really there?
Max Keiser has a great paper on the subject.gold repatriation - Max Keiser

There were 8.4 million jobs lost during the recession to low-wage labor markets. They are not likely to come back. Jobs are still leaving. Decreased aggregate wages cause more domestic job loss.
Bankers bet on continuing growth. Keynesian economics requires a continuing growth in money and credit. When this failed to happen, the bankers tapped into taxpayers to keep things going for THEM. They demanded that NO bank investor ever lose a dime.

Even though these job losses were permanent, Bernanke considered this to be just a cyclical downturn that would soon be over. How To Spot A Zombie | Finance
He MUST have taken a stupid-pill.

Since every country attacks the currency of other countries, every country HAS to have protection. This was well proved in the Asian currency crisis.
Protection means GOLD. A couple of months ago, Germany said that it was ludicrous to think of repatriating their gold. NOW, they want it back. Several other countries want the same thing.

Germany's gold is gone. It was leased out to boost the dollar. The Treasury said that it will take 7 years to get it back.Germany&#039;s gold at NY Fed may be impaired, Centennial&#039;s analysts agree | Gold Anti-Trust Action Committee
Drexel admitted that it had lost 17 tons of Swiss gold. Everybody is getting nervous.
Sovereign states debase their currency to maintain market share against low-wage competitors. If they don't hold gold, the debasement can run out of control. Currency inflation tends to flow into commodities rather than into wages. Currency inflation is essentially a wage cut. As wages are (effectively) cut, people buy less and this improves the balance of trade. Fewer imports. But, since everybody is forced to cut consumption, ALL exports and imports are reduced.
Nobody wins in a currency war.

The currency printing eventually causes price inflation. When the price inflation hits food commodities, it causes the poor to be priced out of the market for food. Great graph halfway down this page comparing food price spikes to revolutions.U.S. drought could cause global unrest | Grist

Doug Casey;
"It's not the US economy that's facing a fiscal cliff, it's the US government. People equate government with the economy. They are entirely two different things. The only way to revitalize the US economy is through both vast reductions in taxes and vast reductions in government spending"Doug Casey&#039;s Current View of the World - Casey Research

The banks made the mistake of lending to Sovereign states believing that the states had unlimited taxing authority. The limit was not taxing authority. The limit was the productivity of the private sector. When the private sector went bust, sovereign income went down.
Here is a chart comparing public debt / National Government Revenue.The Critical Chart in Sovereign Debt Analysis - Gresham&#039;s Law

Banks create the principle, NOT the interest. Debt has to grow or there is NO way to produce the interest. This is Keynesian economics and it is still taught to this day. GOV can only create DEBT money. The economy has too much debt and GOV creates more debt ... as a solution.
NOT a good plan but, it is the only plan available with our current system.

52% of Americans rely on a check from GOV. I suspect that very few of them will vote for "vast" reductions in spending.
All-inclusive, GOV debt rises at about $ 7 trillion a year. Total debt is reckoned at $ 212 trillion by Kotlikoff. Last year, he figured it at just $ 202 trillion.

We spend about $ 450 billion on interest payments. Should interest rates rise to the average of 6%, this cost would go up to a few $ trillion a year. Interest rates on treasury notes are slowly rising. The FED is losing control.
Much of our debt is for unfunded liabilities. You wonder if GOV will fail to make payroll one of these days. GOV sends out 80 million checks a month.
Wait and see.

While gold is real nice, many people can't afford to buy it. They can't afford to increase their savings in something so valuable for so little. Even Judas Iscariot took payment in silver. He had expenses.
Historically, many countries have been on a silver standard. China and Germany included. Germany went off the silver standard when the Comstock Lode was discovered in Nevada.

Silver has had a very interesting history just like gold.
In the early sixties, American GOV had about 4 billion ounces of silver.
JFK really wanted to get rid of the FED. Even though there were limited amounts of "silver certificates" in circulation, he printed up nice "U.S. Notes" backed by the silver. The bankers killed him a short time later and LBJ stopped the U.S. Notes printing 11 days after the assassination.

Shortly afterwards, U.S. GOV worked very hard to dump the silver horde so that nobody else would get any bright ideas about dumping the FED.
It took decades but, the 4 billion ounces ran out about October of 2005.
While silver stagnated at around $ 5--6, high-tech found it very valuable for almost everything.
The Manhattan Project used 15,000 TONS of it for R&D work.

A lot of gold is processed at 1 gram per ton. Silver is processed at .05 ounces per ton.
MANY applications using silver only use a small amount relative to the final end cost of the product. That means that producers will find it easier to absorb a higher cost.
Silver is so useful that it will be re-monetized (de facto) along with gold.

It won't be much longer before our foreign suppliers will demand payment in gold or silver. We don't have the gold.âEverybody in the Industry Knows the US Doesnât Have the Goldâ
Fort Knox is empty. Jim Rickards has proposed that we take all the gold that we store for the world in New York. Sounds like a good plan. We take everybody's gold so that we can pay them for the stuff that they export to us. They may very tell us to "piss off".

An Italian bank that was founded in 1472 is now failing. It is a curious story. Everything about finance in Italy is VERY curious. The bank in question was investigated 2 years ago. Apparently, it was being run by some very powerful lefties and the investigation went nowhere. Now, the bank is blowing up in scandal and corruption. Italy risks political crisis as MPS bank scandal turns 'explosive' - Telegraph
This wouldn't be newsworthy except for the fact that Italy is home to HUGE scandals.

I suspect that the whole thing will blow up sooner or later.
Jim Willie has reported about LOTS of bogus U.S. Treasury bonds that J.P. Morgan and Cantor Fitzgerald were passing to foreign investors.
Unfortunately, a big plane flew into the offices of Cantor Fitzgerald and all evidence was destroyed.
The Italian bank is probably so deep into this that the truth will never come out.

There are ways to produce food with almost no man-made energy input.1 MILLION pounds of Food on 3 acres. 10,000 fish 500 yards compost - YouTube
This isn't an option for the average city dweller.
During the Greta Depression, 5.4 million Americans stared to death,,, 1.5 million children. This comes from a Russian researcher who was studying the holdomar. this was at a time when 42 % of Americans lived on the farm.

One of the most informed and comprehensive sites on the net is, The Automatic Earth. Their latest article has dozens of categorized links to earlier articles.The World According to The Automatic Earth - A 2013 Primer Guide | Finance
Morality is gone. Corruption holds sway. In the absence of morality, trust dies out. With the death of trust, commerce and investment fall apart. Why bother to invest when your gains will be stolen by officialdom.
It is generally accepted that every additional one dollar of taxes reduces the productive economy by three dollars.

75% of Americans don't trust GOV. The unfolding of the police-state certainly isn't going to help commerce. GOV expects to substitute coercion for trust.
It was proved long ago that prosperity is directly linked to economic and personal freedom.

The parasites have bled too much out of the economy. It is dying.
It was inflated way too fast. America has 5 times the retail space per-person that France has. America also has 500 MILLION square feet of empty retail space. With all the money pumping, the stock market has become divorced from the real economy.
Bill Gross invests $ 1.9 trillion for his clients. He warns that the credit markets are on track for a "supernova".

There is a reported 10 quadrillion worth of contracts denominated just in dollars. The underlying world GDP is only $ 55 trillion including financial instruments. How much of that would survive a credit supernova?

Americans not in the labor force;
2006: 77,387,000
2007: 78,743,000
2008: 79,501,000
2009: 81,659,000
2010: 83,941,000
2011: 86,001,000
In January, there were supposedly 89,868,000 Americans that were at least 16 years of age that were not in the labor force.
In America today 41 percent of all workers make $20,000 a year or less.

Global wage arbitrage has moved the jobs from the West to the East.
Aggregate American earning power is falling rapidly. 10,000 baby boomers sign up for social security every day for the next 19 years.

The Graham Storey Room, Trinity Hall, Cambridge CB2 1TJ
FREE ADMISSION BUT BOOKING ESSENTIAL
Contact: Dr Claire Daunton or Mary Richmond
01223 332555 or events@trinhall.cam.ac.uk
Larry Elliott is a British journalist and author focusing on economic issues. He is currently Economics editor at The Guardian, and has been with the paper since 1988.

He is the co-author of four books with Dan Atkinson - The Age of Insecurity in 1998; Fantasy Island in 2007, which warned that Britain's growth under New Labour was a debt-driven illusion; and The Gods That Failed in 2008, an analysis of the events and forces that brought the global financial system to the brink of collapse. Their most recent book, Going South: Why Britain will have a Third World Economy by 2014, was published by Palgrave Macmillan in 2012.

Larrys areas of speciality are the UK and global economy, trade and development. He was part of the group that put together the proposal for a Green New Deal, published by the New Economics Foundation in 2008. He graduated from Fitzwilliam College, Cambridge in ---. He is a visiting fellow at Hertfordshire University, a council member of the Overseas Development Institute and an adviser to the Catalyst thinktank and Red Pepper magazine.

Abstract
The financial crash and recession of the past five years has exposed deep, structural weaknesses in the economy. These weaknesses have been evident for at least a century, and the result has been 100 years of relative economic decline punctuated by brief periods when economic performance has been respectable. Over the past 30 years, Britain has ceased to pay its way in the world, running bigger and bigger trade deficits. Consumers have lived beyond their means thanks to the re-cycled proceeds of North Sea oil and because financial deregulation has permitted the build-up of excessive amounts of personal debt. The economy became increasingly lop-sided both in terms of the dominance of one sector, finance, and in terms of one region, London and its penumbra. In the bubble years before the crisis, the economy was running on three engines: the City, the housing market and the public sector. All three stalled in the crisis, and there is nothing to take their place. Unless Britain is to have much lower levels of growth in the future, it will require a new growth model.

British historian Arnold J. Toynbee called the Muqaddimah "a philosophy of history which is undoubtedly the greatest work of its kind that has ever yet been created by any mind in any time or place."

The British philosopher-anthropologist Ernest Gellner considered Ibn Khaldun's definition of government, "an institution which prevents injustice other than such as it commits itself", the best in the history of political theory.

The British philosopher Robert Flint wrote the following on Ibn Khaldun: "...as a theorist of history he had no equal in any age or country until Vico appeared, more than three hundred years later. Plato, Aristotle, and Augustine were not his peers, and all others were unworthy of being even mentioned along with him".

He is best known for his Muqaddimah (known as Prolegomena in English), which was discovered, evaluated and fully appreciated first by 19th century European scholarship,[2] although it has also had considerable influence on 17th-century Ottoman historians like Ḥajjī Khalīfa and Mustafa Naima who relied on his theories to analyze the growth and decline of the Ottoman Empire.[3] Later in the 19th century, Western scholars recognized him as one of the greatest philosophers to come out of the Muslim world. (wiki)

The key issue here is the rate of interest. While the capitalistic world believes that interest must be paid on loans and time deposits, the Islamic belief is that interest is usury (Riba). Instead, only profit should be shared, due to the fact that risk is already covered by counter guarantees.Interest is not so much a problem of morals and ethics, but a matter for mathematic logics. Interest rates are the growth factor for money. In other words, if the macro-economic interest rate is at allto be paid, money supply must always increase. As a result, the western or capitalistic economy is awash with ever growing money.The unstoppable money tsunami causes long term inflation,particularly, price increases in real estate, and precious metals.

here is a need for Western capitalistic economic theory to be re-considered, reviewed, and, if discovered to be contradictory,changed for the better. Let us not forget that the first economist in history was Ibn Khaldun (1332-1406), and, as we can see, his thinking

is valid still today. Riba or usury has always been a problem, both for morals as well as for logics.As a way to deepen our thought about the rate of interest, we should meditate about the mathematical constant e, or the logical idea of compound interest causing money growth by at least 2,7182818.,according to Leonhard Euler and Jacob Bernulli.We must accept that interest rates accelerate  pari passu  with inflation. There is plenty of statistical evidence that galloping inflation feeds on interest rates, which tend, the more inflation grows, to explode and to shoot up at an exponential pace.Interest rate increases do not combat inflation, but cause stagflation first, and accelerating inflation, the more the rates grow.Islamic economics, to our surprise, are right.And there is much more to it, than it appears: The incredible achievements of Islamic investment in Dubai, where the Crown Prince Sheikh Mohammed has built a splendid city in the form of a palm tree in the ocean, without causing inflation, using his capital in a most productive, daring and magnificent way, shows that the penny pinching ways of western economics, always busy pretending to balance budgets and raising taxes again and again, wasting money in tiresome bureaucracies, neglecting public works, and ruining old peoples retirements as a way to save expenditure, proof that Economics as conceived in the West by Lord Keynes, and put in practice by the IM
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needs to be re-considered due to its frequent failures.Bubbles and more bubbles caused by desperate greed, enormous damage to private investors inflicted by certain important dis loyal banks shows a most vicious situation in our western economies.

There is a need of grandeur, decency and moral principles which are valid within the frame of Islamic Economics.The example of Europe ruined by excessive sovereign debt and corrosive interest rates show us the misconceptions of Economics asa science. A key issue which must be resolved, in accordance with the principles of logics, is the solvency of sovereign debt: If public debt is issued in the national currency, either in US$ or Euros, then itis contradictory to sound thinking to deny the repayment on maturity at face value, because the sovereign country is able to issue money.In the case of Greece, a member of the European Community, its sovereign debt should have had the guarantee of the European Central Bank at face value. Banks and other creditors bought sovereign debt well assured that it did not imply risk, due to the principle that sovereign debt can always be repaid in the national currency.This rule has always applied to Treasury Bills issued by the US Government. There is no logical reason why this principle would not be applicable to the European Community as a whole.In any case it appears as foolhardy that member states of the EUshould have issued bonds to be sold in the capital market, instead of requesting such credit from the European Central Bank.At any rate it is contrary to sound thinking that sovereign countries who can issue money should go into debt at all. Interest payments by sovereign states, who can issue money, would be utter nonsense.